Trump Media and Technology Group, the owner of former US president Donald Trump’s social networking site Truth Social, lost more than $US300 million ($449.8 million) last quarter, according to its first earnings report as a publicly traded company.
For the three-month period that ended March 31, the company posted a loss of $US327.6 million ($491.2 million), which it said included $US311 million ($466.3 million) in non-cash expenses related to its merger with a company called Digital World Acquisition Corp, which was essentially a pile of cash looking for a target to merge with.
It’s an example of what’s called a special purpose acquisition company, or SPAC, which can give young companies quicker and easier routes to getting their shares trading publicly.
A year earlier, Trump Media posted a loss of $US210,300 ($315,311).
Trump Media said it collected $US770,500 ($115,5241) in revenue in the first quarter, largely from its “nascent advertising initiative”.
That was down from $US1.1 million ($1.65 million) a year earlier.
“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” Trump Media said in its earnings news release.
